Within 2 years ArbTech expects evidence of its success through the following tangible outcomes:
REDUCED FINANCIAL COMPLEXITY – Total derivatives volume will shrink by 30%. ArbTech products will comprise 40% of remaining derivatives volume. The total number of CUSIPs worldwide will drop by 50%.
REDUCED ASYMMETRY WITHIN FINANCIAL PRICES – Across markets for equities, currencies, commodities, and interest rates, the range for ArbTech’s HOPE Ratio™ and TIX™ metrics will move down from between 1.10 and 4.75 in 2015 to a steadier range of between .85 and 2.75 in 2017.
INCREASED HEDGE FUND PROFITABILITY – The death of BSM will create an immediate need to discover real and rigorous arbitrage pricing boundaries. Hedge funds will finally have a large system-wide price inefficiency to resolve. This will increase hedge fund profits by 20%-40% during this period.